Gold:
Gold closed Friday at $1675 an ounce, its lowest since the end of August after the NFP results. The gold trader looking for support levels will have to consider the one day chart and turn to $1600 for the next strong level.
As the psychological support level of $1700 an ounce was challenged a few times before the last NFP, good employment results from the labor market managed to break it and receive momentum all the way down to $1675. A trading range is likely to develop now between $1675 and $1685, but will probably be short lived as the election looms ahead.
Dax:
The Dax closed yesterday around its short term support level of 7355 and is looking quite fragile before the all-important events taking place this coming week.
Elections in the US will definitely affect the German index and Europe as a whole, but perhaps even more of a factor is that uncertainty in Greece is on the rise again. A first vote in the Greek parliament will take place on November 7th. The situation in Greece today is a perfect example of how the world treats different countries in different ways for the same “crimes”.
Just as austerity measures are said to have a horrific impact on the American economy before the fiscal cliff at the year end, the Greeks have been pushed to their limits and this coming vote could be their first swing back at the ECB.